If you own a business with various branches, or different business verticals altogether, you might wonder if you can use the same GST number for all the businesses and if yes, what is the procedure for the same? This article will answer all these questions.
The GST Act demands all the suppliers of taxable goods and services who attain the turnover as prescribed by the act from time to time, to register for GST. The registration has to be done from the state or Union Territory from which the supply was made. Goods and Services Tax has indeed acted as a remedy against all hindrances related to the erstwhile taxation system. Though every business with a turnover exceeding ₹40 Lakhs needs to register for GST, there are infinite voluntary GST registration procedures that are available to everyone.
The GSTIN number has a prescribed format wherein the first two numbers represent the state in which the business has registered for GST. Hence, the first two digits in any GSTIN represent the state of GST registration. The PAN of all your business operating across states will remain the same.
Do You Need Separate GST Registration for All Your Multiple Businesses and Business Verticals?
You can operate your various businesses, business branches, and business verticals with the same PAN, and GST number. The GST Act allows businesses to operate multiple businesses, business verticals and business branches using the same GSTIN. This concept is called Vertical Business in GST. As per this concept, you can register your various businesses and business branches under the same GST number.
You can opt to operate your different businesses under the same GST number or if you want to manage them separately, you can obtain separate registrations for all your businesses as well. Therefore, if you own various branches or multiple businesses, you can choose to add them under a corresponding GST number.
This facility of adding multiple branches and businesses to one GST registration is undoubtedly truly supportive of business expansion and diversification. It favors the growth of MSMEs and startups in India. As an entrepreneur, you can expand your business over a vast region within a state, without having to get caught in the hassle of the GST registration procedure for each of your branches or business. You can instead choose to add all the other businesses to a corresponding GSTIN.
What Are the Conditions for Adding Multiple Businesses to the Same GST Number?
You can add any number of businesses to your existing GSTIN provided you meet the following criteria set out by the CBEC:
- Multiple businesses, business verticals, or business branches must exist in the same state.
- The business should not be an entity registered under the GST Composition Scheme. Entities registered under the Composition Scheme are not allowed to use this facility.
- Every business entity has to tax every other registered branch, vertical or business for the taxable supply of goods and services. For every sale made, a tax invoice has to be issued.
Taking into consideration the aforementioned conditions, you can add multiple businesses to your corresponding GSTIN. Now, let us look at the procedure to do so.
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What Is the Step-By-Step Procedure to Add Multiple Businesses to One GSTIN?
The process of adding your multiple businesses or branches to a corresponding GST is simple. You need to:
- Step 1: Log in to the GST portal
- Step 2: From the Registration Tab, select the option “Amendment of Registration Non-Core Fields”
- Step 3: From the given Non-Core Fields, select the option “Additional Places of Business”
- Step 4: Click on the Continue button. The screen that appears next will demand you to specify the Goods & Services you want to add. Enter the HSN code in case of goods and SAC codes in case you provide services. Click on the Save & Continue button
- Step 6: The next set of details you need to provide are the details of bank accounts your business holds
- Step 7: You will then be required to enter the State Specific Information such as the Professional Tax employee Code (EC), Tax Registration Certificate (RC), and the State Excise License Number with the person in whose name the Excise License is held
- Step 8: The last step is verification and authentication, for which you will be required to click on the verification checkbox, and click on the submit with DSC button. After verifying your DSC, your business will be added to your GST registration account.
Finally, you need to authenticate the entered information by clicking on the Verification checkbox and clicking on Submit with the DSC button.
The Takeaway
With the aforementioned procedure, you can add your multiple businesses to the corresponding GSTIN. It is, however, important that you hire experts to register and handle your GST registration: https://reg.gst.gov.in/registration/. GST experts at Vakilsearch will handle all your issues concerning GST in a proper, legal, timely, and hassle-free manner. Therefore, you can trustfully leave all the taxation issues to Vakilsearch and instill your focus on the core activities of your business.
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